Kenya’s net external borrowing in the next financial year (2025-26) is expected to more than halve to Sh166.7 billion from Sh355.5 billion in the current year, courtesy of a sharp increase in principal debt repayments that will need to be rolled over using new borrowing.
Fiscal projections published by the National Treasury in the Budget Review and Outlook Paper (Brop) 2024 show that domestic lenders are instead expected to shoulder the burden of funding the government’s fiscal deficit next year, which is projected at Sh689.4 billion.
